DGAP-News: VERBIO Vereinigte BioEnergie AG / Key word(s): Quarter Results/Temporary Suspension VERBIO Vereinigte BioEnergie AG: BUSINESS DEVELOPMENTS IN THE 2ND QUARTER OF 2012/2013 PROFITED FROM A DROP IN ILLEGAL IMPORTS 07.02.2013 / 08:00 --------------------------------------------------------------------- VERBIO AG: BUSINESS DEVELOPMENTS IN THE 2ND QUARTER OF 2012/2013 PROFITED FROM A DROP IN ILLEGAL IMPORTS - anti-dumping proceeding ongoing - registration requirement for biodiesel imports from Argentina and Indonesia / anti-subsidy proceeding initiated - production and market share of verbiogas is increasing further - use of palm oil for biodiesel production grows strongly Zörbig / Leipzig, February 7, 2013 - VERBIO Vereinigte BioEnergie AG (VERBIO) posts consolidated sales in the first six months of its financial year 2012/2013 of EUR 408.8 million (1 HY 2011/2012: EUR 439.0 million) which is 7 percent down from the previous year level. Overall, during this period, 257,485 tons of biofuels were produced, compared to 310,922 tons in the corresponding period last year. During the financial year, production of biodiesel and bioethanol increased from 116,542 tons in the first quarter to 140,943 tons in the second quarter. EBITDA and EBIT were burdened over the entire reporting period by price and margin pressure in the biodiesel business and the lower capacity utilization of biodiesel plants. Compared to the same period last year, higher personnel costs, other expenses and a negative result from commodity futures totaling EUR -2.1 million (1 HY 2011/2012: EUR 6.0 million income) made an effect. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 8.0 million (1 HY 2011/2012: EUR 20.3 million.). The second quarter of financial year 2012/2013 contributed EUR 6.4 million to the EBITDA of the reporting period. The consolidated operating result (EBIT) amounted to EUR -5.0 million and was below the comparable previous year's figure (1 HY 2011/2012: EUR 7.4 million). After an EBIT of EUR -4.9 million in the first quarter, the EBIT in the second quarter was EUR -0.1 million. As at balance sheet date 31 December 2012, the equity ratio was 48.9 percent; financial resources available to VERBIO amount to EUR 28.9 million. Fewer illegal imports of biodiesel from Argentina and Indonesia at the end of the year In the calendar year 2012, the German market for biodiesel was burdened by imports of not sustainably produced and subsidized biodiesel (from soya and palm oil) coming from Argentina and Indonesia and, compared to 2011, by significantly higher imports of biodiesel from used cooking oils (UCO). It is known that for the production of biodiesel from used cooking oil partially not pure used cooking oil was used. The European anti-fraud office OLAF currently investigates against a Norwegian producer. According to available information there are on-going investigations against individual producers respectively importers by the German customers authorities. Out of this reason the Federal Environment Ministry has reacted by tightening the registration duty for biodiesel from used cooking oil, which came into effect January 1st, 2013, and already has caused a significant volume reduction. The volume reduction can be judged as evidence and scale to which extent the existing legislation was purposely abused in 2012. It remains to be seen, which volumes of biodiesel from used cooking oil with double counting will be registered and accepted as fulfilment of the biofuel blending quota and what kind of consequences are to be seen for the quota obligated party out of incorrect bio-balance sheets. On January 29th, 2013, the European Commission announced that all imports of biodiesel from Argentina and Indonesia must now be registered. Following a positive decision of an anti-dumping proceeding, punitive tariffs can now be imposed 90 days retroactively on quantities that have already been registered. Despite positive signals it is still difficult to judge, how stricter controls over the sustainability of biodiesel from used cooking oil and the on-going anti-dumping proceeding against Argentina and Indonesia will affect the further demand for biodiesel. Therefore, and also because of the ongoing debate about the EU's amendment, it is not possible to give a reliable forecast for the current financial year and future development. As soon as there is more transparency, the Board will announce a new, reliable forecast. Use of palm oil for biodiesel production grows strongly The fact remains that despite sustainability regulations by far the largest volume of Biodiesel from palm oil was registered for the fulfilment of the German and European biofuel targets in 2012. Because, the use of cheaper palm oil compared to rapeseed oil from domestic production generates higher margins and further on no measures of the politics against the use of palm appears. VERBIO will also increasingly use palm oil for the biodiesel production and reduce the use of rapeseed oil as far as possible in the months to come. Development of the Segments Price and margin pressure in the biodiesel market in the first half of financial year 2012/2013 The price and margin pressure in the biodiesel market in the first half of financial year 2012/2013 resulted in lower utilization of the biodiesel plants and thus led to lower sales in the domestic blending market compared with the previous year. Fortunately the export quota for biodiesel could be more than doubled from 10 percent up to 24 percent in the reporting period. In the first half year 2012/2013, revenues achieved in the biodiesel segment were EUR 233.2 million (1 HY 2011/2012: EUR 263.6 million). The segment result amounted to EUR -0.6 million (1 HY 2011/2012: EUR 9.2 million). After standing at EUR -4.0 million in the first quarter of the financial year, the segment result improved and showed EUR 3.4 million in second quarter. Utilization of the bioethanol plants adapted to the capacity of biomethane plants Given production of 84,098 tons of bioethanol in the first half year 2012/2013, the amount produced was less than that of the corresponding period last year (1 HY 2011/2012: 111,781 tons). Utilization of ethanol plants thus corresponded with the current capacity of biomethane plants, which produced 182,188 MWh of biomethane in the first half of 2012/2013, reflecting an increase of 42 per cent (1 HY 2011/2012: 128,034 MWh) compared to the first half-year 2011/2012. Revenue in the bioethanol segment amounted to EUR 119.6 million (1 HY 2011/2012: EUR 140.4 million). The segment result for the first half year 2012/2013 amounted to EUR -1.9 million compared to EUR -2.0 million in the corresponding period last year. The importance of biomethane as a biofuel in Germany has increased considerably. Meanwhile, about 20 percent of natural gas in the fuel sector has been replaced by biomethane. VERBIO is present with its product verbiogas at 122 of the 137 natural gas filling stations, which offer 100 percent pure biomethane. This corresponds to a market share of 89 percent. The growth in demand in the bioethanol blending market is stable. The increased use of bioethanol in Germany is mainly attributable to fuel type E10. Revenue contribution from other segments EUR 56.0 million In the first half year of 2012/2013, Märka GmbH generated EUR 50.9 million (1 HY 2011/2012: EUR 30.4 million) from the sale of grain, seeds and fertilizers with third parties. Due to the excellent progress of the harvest, a much greater volume of grain and oilseeds was gathered than in the same period in 2011. The segment result amounted to EUR -3.4 million (1 HY 2011/2012: EUR -0.9 million). The segment other contributed EUR 5.1 million (1 HY 2011/2012: EUR 4.6 million) and EUR 0.7 million (1 HY 2011/2012: EUR 1.1 million) to Group sales and Group operating result. The Half-Year-Report 2012/2013 is available at www.verbio.de/investor-relations/aktuelles-publikationen/finanzberichte/. Information about VERBIO Vereinigte BioEnergie AG (VERBIO) VERBIO is one of the leading independent producers and providers of biofuels and is at the same time the only large industrial producer of biodiesel, bioethanol and biomethane in Europe. The nominal capacity is at a rounded 450,000 tons biodiesel, 300,000 tons bioethanol and 480 gigawatt hours biomethane per year. In the production of its highly efficient fuels, the company uses energy-saving production processes and innovative technologies of own development. The biofuels of VERBIO achieve CO2 reductions of up to 90 percent compared to petrol or diesel. VERBIO delivers its products directly to the European mineral oil conglomerates, mineral oil trading companies, independent gas stations, freight forwarders, municipal utilities and vehicle fleets. In addition, VERBIO markets high-quality pharma glycerine for the consumer goods and cosmetics industry (glycerine is gained as a by-product in biodiesel production). Within the group, VERBIO Vereinigte BioEnergie AG acts as Management Holding. The operative business is exercised by the subsidiaries, VERBIO Diesel Bitterfeld GmbH & Co. KG, VERBIO Diesel Schwedt GmbH & Co. KG, VERBIO Ethanol Schwedt GmbH & Co. KG, VERBIO Ethanol Zörbig GmbH & Co. KG and Märka GmbH. The VERBIO stock (ISIN DE000A0JL9W6 / WKN A0JL9W) has been listed at the Prime Standard of the Frankfurt stock exchange since October 2006. Important notice This Corporate News contains forward-looking statements, which are based on assumptions and estimates of the company management of VERBIO Vereinigte BioEnergie AG. Although the company management is of the opinion that these assumptions and estimates are accurate, the actual future development and actual future results may differ significantly from these assumptions and estimates due to various factors. Among these factors may be, for example a change in the overall economic situation, legal and regulatory framework conditions in Germany and the EU, as well as changes within the industry. VERBIO does not assume any guarantee or liability for the consistency of the future development and the actual results achieved in the future with the assumptions and estimates expressed in this Corporate News. End of Corporate News --------------------------------------------------------------------- 07.02.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: VERBIO Vereinigte BioEnergie AG Augustusplatz 9 04109 Leipzig Germany Phone: +49 (0)341 30 85 30 290 Fax: +49 (0)341 30 85 30 298 E-mail: ir@verbio.de Internet: www.verbio.de ISIN: DE000A0JL9W6 WKN: A0JL9W Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 200831 07.02.2013
DGAP-News: VERBIO Vereinigte BioEnergie AG: BUSINESS DEVELOPMENTS IN THE 2ND QUARTER OF 2012/2013 PROFITED FROM A DROP IN ILLEGAL IMPORTS
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